The Thrift Savings Plan is an important part of the total FERS retirement package. It gives you a way to save extra money for the future and get a tax break today.

When you join FERS, your agency sets up a Thrift Savings Plan account in your name. Every pay period, your agency automatically puts in an amount equal to 1% of your basic pay. This money is called your Agency Automatic (1%) Contribution. It is not a deduction from your basic pay. It is an amount your agency contributes for you based on your basic pay per pay period.

In addition, you can contribute up to 10% of your basic pay per pay period to your Thrift Savings Plan account. If you contribute to your Thrift Savings Plan account, you will also receive Agency Matching Contributions as follows:

• The first 3% you save each pay period will be matched dollar for dollar, and
• The next 2% you save each pay period will be matched 50 cents on the dollar.

As a CSRS employee you may participate in the Thrift Savings Plan. The Plan allows you to contribute up to 5% of your basic pay per pay period on a before tax basis to your Thrift Savings Plan account. However, CSRS employees do not receive Agency Matching or Automatic (1%) Contributions.

Updated 26 May 1998